If a competitive price-taker firm is currently producing a level of output at which marginal revenue exceeds marginal cost, then

A) a one-unit increase in output will increase the firm's profit.
B) a one-unit decrease in output will increase the firm's profit.
C) total revenue exceeds total cost.
D) total cost exceeds total revenue.

Marginal Revenue

The additional revenue that a firm receives from selling one more unit of a good or service.

Marginal Cost

The extra expense resulting from the manufacture of an additional unit of a product or service.

Competitive Price-Taker

A market participant who cannot influence the price on the market but instead must accept the prevailing market price.